World Bank Partnership for Market Readiness programme (PMR) has contracted NewClimate Institute and Ricardo Energy and Environment to develop a guide for providing an overview and practical guidance for policy-makers and practitioners on the main design elements of establishing benchmarks.

Applications discussed in the guide pertain to climate policy instruments, in particular for allocation of emissions allowances in emission trading schemes, determination of carbon tax exemptions for a carbon tax and establishing baselines for scaled-up crediting programs. The guide covers methodological approaches for benchmarking and practical, step by step guidance on development, implementation and management of benchmark.

The guide benefits substantively from practical experiences of over 16 surveyed jurisdictions, complemented by detailed literature review and an elaborate review process involving the PMR’s expert group on benchmarking, and the Partnership Assembly.